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2007-03-23 05:29:28 · 9 answers · asked by rajubhai mehta 1 in Business & Finance Investing

9 answers

India is an emerging market and is very risky. Also, the execution prices will be very high. Depending on where you live you may not b able to access it very easily. If you like to gamble give it a whirl. I would suggest you avoid it though.

2007-03-23 05:45:11 · answer #1 · answered by Anonymous · 0 0

There is NO right time. Is it the right time to buy a house?

If you have a long term view and you are not going anywhere, then neither is the market.

So, start now.

The big question, is what is next? Do you know what you want to buy? Do you know when to sell? Do you know how to analyze companies using TA and FA?

There is a lot to learn. Start early, invest wisely, do your homework, and most importantly Be Patient. You are buying a business, not a piece of paper (stock certificate, and you don't even get that now!). You get a Digital Contract!!!!!!!!!!!!!

KKP

2007-03-24 03:02:37 · answer #2 · answered by KKP_Investor 3 · 0 0

Buy whenever you see market tanking. If there is a drop of 200-300 points go ahead and buy partially. Whenever the indices touch new high exit some stocks.

You need to have atleast 25% of portfolio in cash to take advantage of sudden dips !

2007-03-23 14:39:34 · answer #3 · answered by Raghav 4 · 0 0

oh yes but for that u have to invest first at mutulfund i think all world r come india to invest fii invest inindia forlong time i think sensex will rich 18000 inthis year eassly so if u invest in this sensex @13000 then 5000 point gain u will get but for that u must invest in good company or mutulfund

2007-03-23 23:53:52 · answer #4 · answered by satyen2073 2 · 0 0

Buy signal on aptistock freeware on Qrtly chart 4 mid term

more on my blog

2007-03-24 12:19:44 · answer #5 · answered by dinu_pawar 5 · 0 0

naw! invest in forex a much better market?

here is some details on the forex market

http://www.forexaim.com

2007-03-23 12:33:18 · answer #6 · answered by m2cgbldlr 1 · 0 0

you can invest at any time in India

2007-03-23 12:34:12 · answer #7 · answered by siva k 2 · 0 1

Not now.

Wait for the market to crash below 7000 ........... and buy

2007-03-23 12:50:42 · answer #8 · answered by surez 3 · 0 0

Indian stocks are red hot


Though Indian stocks are considered among the most volatile in the world, recent market analysis has shown that the returns for investors are the best among all the top markets globally, including the US, UK and Asian and European bourses.

Currently, the stock market is in the midst of an unprecedented bull run, with the benchmark index of the Bombay Stock Exchange (BSE) having breached the 13,000 and then the 13,500 mark for the first time in history.

The BSE 30-share index Sensex has provided an average daily



return of about 0.2% over the past year, which is double the return by its nearest rival, the South African index.

All other major world stock indices, including those in the United States, the United Kingdom, France, Hong Kong, Singapore, Australia, Malaysia, Mexico and Japan, have recorded a daily average return of below 0.1%.

Total Indian investor wealth has risen to more than Rs34 trillion (US$759.75 billion) from Rs31 trillion on April 20 when the Sensex first hit 12,000. The BSE Sensex posited a net profit of Rs220 billion in the July-September quarter. Since September 15, the Sensex has gone up by about 8.4%, the BSE index for banking companies improved by more than 15%, and that of information-technology (IT) firms by more than 12.2%.

The Indian economy logged 9.2% growth in the second quarter, the highest rate in 15 years. The main drivers of this rise were hotels and communications at 13.9%, manufacturing at 11.9% and construction, which has come off its high 12.3% growth last year.

Foreign funds have returned with a vengeance after dumping $2.5 billion worth of stocks during the May-June tumble. The net investment so far this year is more than $5.5 billion, still a slower pace than the $10.7 billion in 2005. However, since June 14, they've bought local shares worth more than $3.5 billion, surpassing the amount they sold during the rout.

The BSE Bankex index, comprising 18 banking stocks, including such giants as State Bank of India, ICICI Bank and HDFC Bank, has risen more than 23% since April 20 when the market first hit 12,000.

Banking stocks, followed by IT, have emerged as the biggest gainers in the wake of robust quarterly results, strong credit growth and capital raising initiatives, adding more than Rs450 billion during the 12,000-13,000 journey to a total of Rs2.7 trillion.

In other sectors, the combined market cap of 10 IT stocks (which again have reported very good quarter results) present on the index has increased by more than Rs350 billion to nearly Rs3.5 trillion.

India's top software-services companies, TCS, Wipro and Infosys Technologies, have overtaken market expectations by clocking nearly 50% growth in revenue (48.24%) and net profit (48.52%) during the quarter ended September 2006.

Infosys leads the chart with operating margins of 32.14% (32%), followed by TCS at 28.27% (30.25%) and Wipro with 21% (20.91%).

Finance Minister P Chidambaram has said that the surge in the Indian stock markets has been orderly and attributed it to improved corporate prospects and falling oil prices.

On India's growth performance, Chidambaram said: "The fact that the economy recorded the highest growth of 9.1% in the first half of any fiscal since economic reforms began in 1991-92 makes us doubly happy. I hope the current year turns out to be one of the best years of economic growth."

Deepak Lalwani at London stockbroker Astaire and Partners Ltd said: "The India story remains positive. A strong first-quarter GDP [gross domestic product] figure, better-than-expected second-quarter results from the IT majors, international markets at year highs, lower energy and commodity prices and a return to emerging markets by institutional investors have helped push the Sensex to new historic highs.

"Even if the US economy does slow down, India is relatively better off because only about 15% of GDP comes from exports as the country has a huge domestic market,'' said Lalwani.

High volatility
However, one has to be cautious still. The overall mood is still less euphoric than the heady bull run at the start of the year that sent the benchmark index to a peak on May 11, only to be savaged by an emerging-markets selloff that knocked it back 30% by mid-June.

Analysts have said that the rally this time is not broad-based and is restricted to a handful of stocks in select sectors. The rise is almost entirely driven by stocks from the services sector, mainly information technology, with manufacturing taking the back seat.

"The major difference is that this time there is no euphoria. The market may be at a new high but there are a large number of stocks not at a new high," said Jayesh Shroff, fund manager at SBI Mutual Fund. "Retail participation is still not near where it was in May."

Indeed, along with the high gains from the market, the volatility of the crucial stock index is also the highest in India. The existing level of volatility in the Indian market is still more than in most major markets. Apart from India, only Mexico, Brazil, Japan and South Africa have recorded an average daily volatility of more than 1% over the past one year.

The volatility ratio recorded an all-time high of 12.55% on May 22 - the day when Sensex recorded the highest intra-day fall of 1,111 points. However, the daily average volatility has been on a steady decline over the past few months after reaching as high as 3.25% in June. It has bordered at the 1% level over the past couple of months, except for a few days when it rose to nearly 2%.

The volatility gauge has been below 1% in comparatively mature markets such as the US, the UK, France, Hong Kong, Singapore, Australia and Malaysia.

An analysis of the volatility index of BSE Sensex during the April-September period in 2006 shows it peaked in the May-June period at 2.55 and 3.25. It then declined gradually because of strong foreign institutional investor inflows and improving investor outlook. Volatility declined to 1.97% in July and then to 0.67% in August. Since September, it has hovered between 1% and 1.6%.

But there are enough grounds for hope. Morgan Stanley in its India strategy report has noted that as the demand is growing and Indian companies are operating at full capacity, they are now going for expansion. The report said capital expenditures by companies are likely to go up by 50% in 2006 and 40% in 2007.

The chairman of DSP Merrill Lynch, Hemendra Kothari, has said India continues to be a great growth story. "[The] Indian economy is growing at around 9% and companies are showing better than expected results. Overall, it is a great opportunity for investors,'' he said.

2007-03-23 12:48:27 · answer #9 · answered by Anonymous · 0 0

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